Question 26
HardOriginal questionC = 40 + 0.75Y and investment is ₹60 crore. If income were ₹300 crore, unplanned change in inventories would be
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
AD at Y = 300: 40 + 0.75 × 300 + 60 = 325.
Spending (325) exceeds output (300) by 25, which comes out of stock: inventories fall by ₹25 crore.
- Concept
- Unplanned inventory change
- Typical timeTypical
- 100 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Income Determination & the Multiplier, at your own pace.